N.H. Admin. Code § Rev 603.04

Current through Register No. 50, December 12, 2024

Section Rev 603.04 - Full Revaluation and Full Statistical Revaluation Contract Services

For a full revaluation and a full statistical revaluation contract the following services shall be performed and provided:

(a) Property records shall be compiled as follows:

(1) The contractor shall prepare an individual property record for each separate parcel of property in the municipality arranged to show:

a. The owner's name, street number, map and lot number, or other designation of the property;

b. The owner's mailing address;

c. All information necessary to derive and understand:

1. The land value;

2. The number of acres of the parcel;

3. The land classification;

4. The adjustments made to land values;

5. The value of the improvements on the land;

6. The accurate description of all the improvements whether affecting market value or not;

7. The improvement pricing details;

8. The allowances made for physical, functional, and economic depreciation factors;

9. The outline sketch of all principal improvements with dimensions with the street side or waterfront toward the bottom of the diagram;

10. The base valuation year; and

11. The print date of the property record;

d. The specific elements and details of construction, which may include, but not be limited to, the items contained in Rev 603.02 (a)(1) & (2) and Rev 603.03 (a)(1) & (2);

e. Photograph(s) of the principal building, if required by the contract;

f. History of the property transfer to include:

1. Date of sale;

2. Consideration amount;

3. Qualification code; and

4. Property type noted as either vacant or improved;

g. A notation area to record comments pertaining to the property; and

h. A notation area to record the history of the property, which may include, but not be limited to:

1. Property inspection date;

2. Individual's identification number or initials associated with the inspection;

3. The extent of the inspection;

4. Reason of the inspection; and

5. Any value adjustment(s);

(b) A market analysis shall be completed as follows:

(1) A certified property assessor supervisor shall conduct the full revaluation and full statistical revaluation market analysis;

(2) A certified property assessor assistant, under the guidance of a certified property assessor or a certified property assessor supervisor, may validate or invalidate sales for the market analysis;

(3) The contract shall specify that the municipality shall provide to the contractor a copy of all property transfers for a minimum of 2 years immediately preceding the effective date of the revaluation;

(4) A market analysis shall be conducted by the contractor using accepted mass appraisal methods in order to determine land, improvements, and any other contributory values or factors including:

a. A review of all property transfers provided by the municipal assessing officials to the contractor;

b. A compilation of all unqualified property transfers into a list containing:

1. The parcel map and lot number;

2. The disqualification code;

3. The date of sale; and

4. The sale price;

c. A compilation of all qualified property transfers into a list including:

1. The parcel map and lot number;

2. The date of sale;

3. The sale price;

4. The newly established value;

5. If required by the contract, a photocopy or printout of the property record card for each property transferred; and

6. If required by the contract, a photograph of the principal improvements attached thereto;

d. Estimated land values with the documented results, as follows:

1. Utilizing vacant land sales whenever possible; and

2. In the absence of an adequate number of vacant land sales, the land residual method or other recognized land valuation methodologies shall be used to assist in the determination of land unit values;

e. The indicated land values shall be documented as:

1. Site;

2. Front or square foot;

3. Front acre;

4. Rear acre units; or

5. Other appropriate units of comparison;

f. An analysis section to include:

1. The sale price; and

2. Supporting adjustments made in sufficient detail to be understood by the municipal assessing officials and taxpayers;

g. The market analysis used to indicate unit values with the documentation of the method(s) employed and any special adjustment factors; and

h. Tax maps showing the locations of all qualified sales and the delineation of neighborhoods if required by the contract; and

(5) The preliminary market analysis shall:

a. Be provided to the municipal assessing officials and the DRA prior to the acceptance of the new values by the municipal assessing officials;

b. Be printed in its final form and provided to the municipal assessing officials and the DRA at the completion of the revaluation as part of the USPAP compliant report; and

c. Become property of the municipality;

(c) The valuation of property for the revaluation shall be completed by utilizing recognized approaches to value, which may include, but not be limited to:

(1) The cost approach, when utilized, shall be implemented by calibrating and applying land valuation tables, building valuation tables, and unit costs as follows:

a. Investigate, with documented analysis, land values for residential, commercial, industrial, and any other special use properties in the area;

b. Documentation of the land valuation tables and unit costs by including statistical testing to compare the calculated preliminary land value to the sale properties to ensure accuracy before the land valuation tables and unit costs are implemented;

c. Documentation for the development of the units of comparison that shall be used for the base land prices, which may include, but not be limited to:

1. Site;

2. Front foot;

3. Square foot;

4. Front acre;

5. Rear acre; and

6. Other appropriate units of comparison;

d. Documentation for site specific characteristic land adjustments, which may include, but not be limited to:

1. Topography;

2. View;

3. Size;

4. Location; and

5. Access;

e. Documentation of the calibration of all land tables and models;

f. Investigate, with documented analysis, the building costs of residential, commercial, industrial, and any other special use properties in the area;

g. Documentation of the testing of the contractor's building valuation tables and unit costs by comparing the calculated preliminary building value to the sale properties, for which the building costs are known, to ensure accuracy before the building valuation tables and unit costs are implemented;

h. In utilizing building costs as the basis of appraisal for properties, the building cost tables shall consist of unit prices based upon relevant factors, which may include, but not be limited to:

1. Specifications for various types of improvements;

2. The quality of construction;

3. The building customs and practices in the municipality;

4. Various story heights and square foot areas adequate for the valuation of all types of buildings or other improvements to the land;

5. Tables for additions and deductions for variations from the base cost improvement specifications; and

6. Tables for depreciation based upon age and condition of the improvements; and

i. Documentation of the calibration of all building cost tables and models;

(2) The income approach, when utilized, shall be implemented by calibrating and applying valuation models as follows:

a. Investigate and qualify, with documented analysis, market data, which may include, but not be limited to:

1. Income, expenses, vacancy, and capitalization rates for residential income, commercial, industrial, and any other special use properties;

2. Property specific characteristics;

3. Documented statistical testing for the income valuation models to known sales of similar properties;

4. Valuation models consisting of market data based upon:

(i) Defined descriptions and specification based upon property type; and

(ii) Quality and size of the improvements; and

5. Documentation of the calibration of all income valuation tables and models;

(3) The market-sales comparison approach, when utilized, shall be implemented by calibrating and applying valuation models as follows:

a. The contractor shall qualify, analyze, and use sales as direct units of comparison in the valuation of residential, commercial, industrial, and any other special use properties;

b. An investigation with documented analysis of comparable sales;

c. Documentation of the adjustments for specifics, which may include, but not be limited to:

1. Location;

2. Time;

3. Size;

4. Features; and

5. Condition;

d. Documentation on how the adjustments were derived;

e. Documentation of final value reconciliation; and

f. Documented calibration for all of the sales comparison tables and models;

(d) In the utilization of the appraisal approaches to valuation, the contractor shall make and document adjustments made to properties for depreciation factors, which may include, but not be limited to, physical, functional, and economic conditions;

(e) The contractor shall identify the utility and special use properties within the municipality by:

(1) Providing documentation of the methodology and analysis that was utilized by the contractor in the establishment of the assessed value(s); and

(2) Indicating the properties that were not part of the appraisal work performed under the revaluation contract by:

a. Identification of the property; and

b. Identification of the source of the appraisal of the property for the revaluation;

(f) If required by the contract, the contractor shall ensure that a final comprehensive review of the newly established values shall be performed by a certified property assessor supervisor utilizing a parcel by parcel field review of the entire municipality to:

(1) Ensure that all properties are valued at their highest and best use and as applicable appraised pursuant to RSA 75:1; and

(2) Identify and correct any mechanical errors, inconsistencies, unusual features, or value influencing factors;

(g) The value notification and informal reviews shall be completed as follows:

(1) The contractor shall provide to the municipal assessing officials:

a. A list of the newly established values for review;

b. A preliminary value analysis with a copy delivered to DRA for review; and

c. The informal review schedule in advance for a BTLA ordered revaluation and for all other revaluations if requested by the municipality;

(2) For a BTLA ordered revaluation the contractor shall mail, first class, to all property owners, the notification of the newly established value of their property by sending to the property owner either of the following and, for all other revaluations as requested by the municipality:

a. A list of all property owners containing the newly established valuations of all properties within the municipality; or

b. A letter to the owner stating the newly established value of their property and whether the contractor has either:

1. Published a list of all property owners containing the newly established valuations for all properties within the municipality in an identified newspaper of general circulation for the entire municipality; or

2. Posted in 2 identified public places within the municipality a list of all property owners and the newly established values of the entire municipality;

(3) The notification of newly established values shall contain the details of the informal review process, instructions on scheduling an informal review, and the time frame in which informal reviews shall be scheduled, if applicable;

(4) The notification of newly established values shall contain instructions in regard to the appeal process for abatements pursuant to RSA 76:16, RSA 76:16-a and RSA 76:17;

(5) After mailing or posting of the notification of newly established values the contractor shall ensure that an informal review of the newly established property values is provided to all property owners who may, within the time prescribed by the contract, request such a review;

(6) For all revaluations, not withstanding Rev 602.05 the contractor shall make available to all property owners the property record card and market analysis related to their newly established property value(s);

(7) For a BTLA ordered revaluation, the contractor shall notify, by first class mail, all property owners addressed during the informal reviews and indicate whether or not a change in value resulted and the amount thereof and, for all other revaluations as requested by the municipality; and

(8) For all revaluations, all documentation utilized or obtained during the informal review process shall be relinquished to the municipal assessing officials;

(h) Appraisal reporting and appraisal manuals shall be completed as follows:

(1) The contractor shall provide a USPAP compliant appraisal report in accordance with the ASB standards and the report shall contain, at a minimum, the following:

a. A letter of transmittal to include a signed and dated USPAP certification statement, accepting responsibility for all elements of the certification, the appraisal results, and the contents of the appraisal report;

b. Sections detailing:

1. The scope of work;

2. The development of values;

3. Time trending analysis;

4. Land and neighborhood data;

5. Improved property data;

6. Statistical testing, analysis, and quality control; and

7. The development of approaches to value used in the revaluation of properties;

c. Appendices, which may include, but not be limited to:

1. Work plan;

2. Neighborhood maps;

3. Names and levels of certified individuals authoring or assisting with the development of the USPAP compliant report;

4. CAMA system codes;

5. Identification and description of zoning districts;

6. Qualified and unqualified sale codes; and

7. Other useful definitions or information; and

d. Instructions, or as a separate document, adequate instructions for the municipal assessing officials to:

1. Understand the valuation methodologies employed;

2. Understand the market and neighborhood adjustments; and

3. Understand the conclusions of the appraisal report;

(2) The contractor shall provide a USPAP compliant report to the municipal assessing officials, to be retained by the municipal officials until the next revaluation, and a copy to the DRA;

(3) The contractor shall provide a data collection manual, to be included within the USPAP report or as a separate document, which may include but not be limited to:

a. A list and description of data elements being collected by the contractor, which may include, but not be limited to:

1. Building characteristics;

2. Extra features;

3. Outbuildings;

4. Site improvements;

5. Site characteristics;

6. Road frontage;

7. Water frontage;

8. Water access;

9. Topography; and

10. View;

b. A glossary and a description of all codes used within the data collection and on property record cards;

c. A description of all grading factors utilized, which may include, but may not be limited to:

1. Condition factors;

2. Quality;

3. Depreciation;

4. Amenity values; and

5. Other factors or conditions; and

d. A glossary and description of the coding used for visitation history; and

(4) The contractor shall ensure that the municipal assessing officials have:

a. A technical CAMA manual detailing the CAMA system utilized; and

b. Been provided training in the proper use of the CAMA system; and

(i) The defense of assessed values shall be completed as follows:

(1) For a BTLA ordered revaluation, the contractor shall, after the final property tax bills have been mailed by the municipality, support and defend the values that were established by the contractor for the year of the revaluation as follows:

a. At no additional cost to the municipality, property tax appeals that are timely filed with the municipality pursuant to RSA 76:16 shall have:

1. A review, by either a certified property assessor or a certified property assessor supervisor; and

2. The contractor's written recommendation provided to the municipal assessing officials for each property for which an appeal had been received;

b. The contractor shall provide a qualified representative for the defense of property tax appeals that are timely filed with the BTLA or superior court pursuant to RSA 76:16-a and RSA 76:17, whose compensation has been agreed upon by the parties to the contract as stipulated in Rev 602.06 (b); and

c. The contractor shall support and defend the values established by the contractor that might have been lowered by the municipal assessing officials but shall not be required to support or defend values that have been increased by the municipal assessing officials;

(2) For all other revaluations the contractor shall provide the procedure for handling and processing of an application for abatement that is appealed to:

a. The municipal assessing officials;

b. The BTLA; and

c. The superior court in the county in which the property is located; and

(3) All documentation utilized or obtained during the defense of assessed value process shall be relinquished to the municipality.

N.H. Admin. Code § Rev 603.04

Amended by Volume XXXIV Number 19, Filed May 8, 2014, Proposed by #10581, Effective 5/1/2014, Expires5/1/2024.

Amended by Number 15, Filed April 11, 2024, Proposed by #13916, Effective 3/28/2024, Expires3/28/2034 (see Revision Note #2 at chapter heading for Rev 600).